Logistics Management

Warehousing
Customer Service
Material Handling

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 Topic 1 : WAREHOUSING
DEFINITION
A warehouse is a commercial building for storage
of goods. Warehouses are used by
manufacturers, importers, exporters,
wholesalers, transport businesses, customs, etc.
They are usually large plain buildings in
industrial parts of towns. They come equipped
with loading docks to load and unload trucks; or
sometimes are loaded directly from railways,
airports, or seaports.

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TYPES OF WAREHOUSES
1. Private Warehousing
2. Public Warehousing
3. Contract Warehousing

 
 Private Warehousing
A firm producing or owning the goods owns private warehouses. The
goods are stored until they are delivered to a retail outlet or sold.
 
 Public Warehousing
A public warehouse rents space to individuals or firm needing
storage, some provide wide array of services
 
 Contract Warehousing
Contract warehousing is a specialized form of public warehousing.

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FUNCTIONS OF WAREHOUSES
The warehousing functionality today is much more than the
traditional function of storage.
The following are main function that warehousing serves today:
 
1. Consolidation
2. Break Bulk
3. Cross Docking
4. Product Mixing
5. Stock Piling
6. Postponement
7. Positioning
8. Assortment
9. Decoupling
10. Safety Stocking
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Advantages of Warehousing

Warehousing offers many advantages to the business community.

Whether it is industry or trade, it provides a number of benefits
which are listed below;
 
 Protection and Preservation of goods
 Regular flow of goods
 Continuity in production
 Convenient location
 Easy handling
 Useful for small businessmen
 Creation of employment
 Facilitates sale of goods
 Availability of finance
 Reduces risk of loss
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WAREHOUSE LOCATION
The location decision regarding warehouses is affected by manufacturing
plant, customer and market locations.
1. Market-positioned warehouses
2. Manufacturing-Positioned Warehouses
3. Intermediately-Positioned Warehouses
 
A few of the factors governing the warehouse locations are:

• Availability of services
• Land cost
• Availability of transport linkages for example, to a
rail siding
• Availability of utilities of water and power
• Taxes and insurance cost
• Expansion space availability
• And soil strength and lay off land for drainage. 6
SIZE OF WAREHOUSE
Some of the most important factors affecting the
size of warehouse are;

1. Customer service levels

2. Size of market
3. Number of products marketed
4. Size of the product
5. Material handling system used
6. Production lead time
7. Office area in warehouse
8. Types of racks and shelves used

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Processes and IT

Major warehousing processes include:

Receiving
Put away
Order preparation / picking
Shipping
Inventory management
(cycle counting, addressing...)
Co-packing
Kitting
Repair
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Automation and optimization
 Some warehouses are completely
automated, and require no
workers inside. Pallets and
product move on a system of
automated conveyors, cranes and
automated storage and retrieval s
ystems
coordinated by
programmable logic controllers
and computers running
logistics automation software.
 Slotting addresses which storage
medium a product is picked from
(pallet rack), and how they are
picked (pick-to-light,
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pick-to-voice, pick-to-paper).
Modern trends

Traditional warehousing has

declined since the last decades of the Aisle with pallets
20th century, with the gradual on storage racks
introduction of Just In Time (JIT)
techniques. The JIT system
promotes product delivery directly
from suppliers to consumer without
the use of warehouses.

However, with the gradual

implementation of offshore
outsourcing and offshoring in
about the same time period, the
distance between the manufacturer
and the retailer (or the parts
manufacturer and the industrial 10
plant) grew considerably
WAREHOUSE LAYOUT AND DESIGN
In a warehouse layout product are grouped according to
their compatibility, complementarities, and popularity.

1. Compatibility refers to whether products can

be stored harmoniously .
2. Complementarities how often product are
ordered together and therefore stored
together.
3. Popularity relates to different inventory
turnover rates or demand rates of products.
Items that are in greatest demand should be
stored closest to shipping and receiving
docks.
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 We have come up with one of the biggest and first of its kind.
Warehousing facilitity at Bhiwandi . This facilitity is approved by
The Petroleum & Explosives Safety Organisation (Previously
known as Explosive Department) as required under Petroleum
Act.

As per the guidelines of PESO we are not suppose to store the

solvents drums beyond certain prescribed quantity in the
premises because of this and the most modern fire fighting
facility provided for the safety of storage materials.

We have holding Explosive license Capacity is A Class Petroleum

Products 1250000 Ltrs., B Class Petroleum Products 500000 Ltrs.,
C Class Petroleum Products 200000 Ltrs. 12
Facilities
The storage godown has a warehousing facility for the
storage of Petroleum Class "A" / "B" / "C" products in
barrels, in non - bulk category. The products will be
received in tankers or pre - filled drums. The material
received in tankers will be emptied and filled in drums
for storage.

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Fire Fighting Facilities
The following are the Fire
Fighting Facilities:
Portable Fire Extinguishers
Foam - 14 Nos. (10kg capacity)
Foam -   7 Nos. (50kg capacity)

Fire Buckets
For each godown - 6 Nos.(total 42 Nos.)

Hydrant System
The system consists of Hydrant points - 7 Nos.
Hydrant hoses - 7 Nos.
Hydrant water storage - 3.75 lakh lits capacity
Hydrant pump - 1700lpm at 7 bar head, working on D.G.

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 Topic 2 : Customer Service
Definition:

“Customer service is a series of activities designed to enhance the

level of customer satisfaction – that is, the feeling that a product or
service has met the customer expectation.“

There are 7 qualities of customer care that will take a business from the great product or
service to the great company;
1. Accessibility

2. Availability

3. Affability

4. Agreeability

5. Accountability

6. Adaptability

7. Ability 15
7 qualities of customer care
1. Accessibility: It starts by making it easy for your customer to do
business with you.
2. Availability: Make sure that your business hours are compatible
with your clients/customers needs.
3. Affability: This will help ensure your customers get the treatment
they deserve.
4. Agreeability:
show the customer that you are doing everything possible to
accommodate them.
5. Accountability: Take ownership of your customer’s needs and
issues.
6. Adaptability: Your customers’ desires are constantly changing.
Make sure that you keep up.
7. Ability: Customers will be far more willing to accept that you are not
perfect.
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Attributes of World-Class Customer
Service Associates

Empowered
Friendly
Quick
Efficient
Eager to please and
Caring
Optimistic
Good listener
Poised
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Self-Managed Attributes

• Knowledgeable
 Competent
 Understand
customers
 Attentive
 Speak clearly
 Honest and Fair
 Problem solvers
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Basic rules about customer service
Honesty is the Best Policy. Integrity – Be honest and
own up to your mistakes.

Response Time –Frequent updates is there is a

protracted issue and a brief overview of how you will
prevent it from happening in the future.

Set a Realistic Expectation –Set the expectations

correctly internally so that everyone understands the
impact to customer satisfaction.

R-E-S-P-E-C-T. – Company should have philosophy to

respect and appreciate your customers. 19
Serving the Customer
Customer Service_An Objective
Customer Service as a Link between Logistics &
Marketing
Customer Service & Customer Retention
Setting Customer Service Priorities
 Matching up to the Ever Changing Customer
Demand

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Scope Of Service in Logistics
Air Freight Shipment
Sea Freight Shipment
Customs Clearance
Door to Door Service
Project Cargo
Warehousing
Pick and Pack
Trucking and Domestic Service
EDI ( Electronic Data Interchange )

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 Topic 3 : MATERIAL HANDLING
Definition:
Material handling may be defined as. “the art
and science of movement, handling and storage
of materials during different stages of
manufacturing considered as materials flow
into, through and away from the plant”.

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Material handling takes place at following stages :
unloading at goods inwards stores.
loading on to an internal transport.
movement to stores for the purpose of storage.
movement from stores to place of use.
movement to and from inspection bays.
movement to and from finished goods stores.
movement to and from dispatch department.
loading of packed materials on to external transport.

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Objectives of Materials Handling
Speed and economy in movement of
materials
Minimization of cost of material handling.
Prevention of damages to material.
Safety in material handling ( i.e. prevention
of accidents).
Minimisation of fatigue and drudgery.
Greater utilisation of material handling
equipment.
Good housekeeping.
Efficient storekeeping.

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 Factors to be considered in analyzing a
material handling problem are :

Engineering Factors and

Economic Factors.

 Engineering factors can be further sub-grouped as under:

(a) Building and plant layout
(b) Manufacturing process and equipment
(c) Nature of Materials and products to be
handled
(d) Material handling equipment factor
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Economic factors

 Initial cost of equipment

 Cost of maintenance and repairs
 Cost of power
 Cost of labour required to
operate the equipment
 Taxes and insurance
 Supervision costs
 Salvage value
 Saving due to expenses on
equipment displaced.
 Savings due to reduction in
rework.
 Savings due to increase in
production.
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Types of Materials handling
equipments :
These material handling equipment differ
from each other in following aspects :
Suitability for the typical type
of Material.
Direction of movement.
Speed of movement
Path followed.
Power required for the
operation of equipment.
Supervision required.

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Considering the above characteristics, materials handling
equipment may be grouped as under :

Wheel borrows, hand truck and trolleys, pulley blocks

etc.
Conveyors
Industrial trucks.
Cranes and hoists
Monorails
Slides and Chutes
Lifts
Tractors and Trailers.

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Principles of Material Handling

Principles of Material Handling

Planning Principle Operating Principle Equipment Principle Costing Principle General Principle

Gravity Replacement Safety

Plant Space Mechani- Standardi-
Layout saving sation sation
Training
Equipment Selection

Flow of Materials

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Symptoms of poor material handling
Production losses due to delays in
trucking, handling and supplying
materials to the point of use.
Frequent cases of material damages
in handling.
Over crowded floor areas with blank
overhead space.
Large number of unskilled contract
labour to handle materials.
Frequent breakdowns of material
handling equipment.
Bad housekeeping. 30
CIPLA _ Patalganga plant

PLANT PROFILE
Patalganga industrial area is
situated on the left bank of
river Patalganga, which is 10
km from Mumbai-Pune National Highway
Plant was established in 1982,the fourth major
factory just outside Mumbai.
Around 250 employees work in the plant
The plant follows standard operating
procedures(SOP’s) strictly.
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 Typical Steps For Handling Of Materials From The
Supplier To Dispensary At Cipla
Supplier
 Delivery
Quarantine (under test)
Accept/Reject
Collation
Transfer
Computer Operation
Transfer to storage area
Production Demand/indent
Computer Operation
Transfer
Dispense
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The Mass Mixer
The Mass Mixer Machine is
basically mixing a assembly
wherein the mixing stirrer is
in horizontal position in the
container & have a single
speed, simple rotation.

Fluid Bed Dryer

Fluid Bed Dryer that functions
on the principle of creating a
fluid turbulence in a
granulated or powdery wet
product with the help of hot
air. 33
Rapid mixer granulator
rapid mixer granulator is to
achieve excellent mixing at
lower operating cost along
with higher productivity.

Multi mill
  We offer multi mill that is a
self contained portable unit
useful for high speed
granulating, pulverizing,
mixing, shredding and
chopping, etc.,
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Thank You…

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